Continental Airlines Chooses Not to Merge

[Kugelblitz]

Its the weekend, do you know where your mgmnt is?

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

 

[Vne]

The CAL/AA alliance is to divide up whats left after either a UAL/US merge when its a failure or a UA failure before they find a dance partner.

"One less airline can make a difference" - UAL flight bag sticker referring to CAL circa 1990.

History IS funny like that.

 

[AAflyer]

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

I was thinking the same thing. It appears to be more of mass than making up for areas each airline is deficient in.

However I think CAL ALPA and APA should get together now and discuss what this might mean....



Respectfully,
AAflyer

 

[Flopgut]

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

I don't know too much, but...

In 98 or so DAL and NWA were close to buying [essentially] CAL. The deal with NWA is the one that went thru and the plan was an enhanced code share affiliation. Both airlines were to stay separate, make a lot of money and both could grow. It required DOJ approval and they DECLINED to approve it!! I think [hope] that's the plan in this case because that would be good. BA, AA and CAL all do our thing and sharing revenue-- a good thing!!

I'm SICK of interesting times!! I'm going to write my own proverb: "May you fly in boring times"

Edit: It was the fact that NWA already had the KLM deal that squelched the code share. This deal with AA and BA accomplishes the same thing. It's supposed to make big money.

 

[Kugelblitz]

The CAL/AA alliance is to divide up whats left after either a UAL/US merge when its a failure or a UA failure before they find a dance partner.



History IS funny like that.

Aye. Be careful what you wish for.

 

[Flopgut]

Is anybody watching CNBC right now?? David Faber just reported that Tilton agreed to leave entirely and Kellner STILL said no!! Holy Crap!! Sorry UAL guys/gals. Maybe this will be sufficient to remove him on your own.

 

[Vne]

Be careful what you wish for.

I do not wish for anything any more....
30 plus years in this industry has killed the ability to "wish"...

 

[Sonny Crockett]

Just a theory.

Just why would CAL expend so much time and energy and money to put together a deal with United and then pull out when we thought the deal was closed?

Perhaps it sounds reminiscent of Delta's initial refusal to consider a merger with Northwest. When Northwest first made ovations to consolidate with DAL, Delta said very publicly that they would be better off as stand lone carrier. But as we all know a deal was finally struck...even a deal with those pesky pilots.

Now it seems Continental is just trying to sweeten the deal for themselves. They bait the hook and Glenn, being the stupid trout that he is, bit down hard. Then it comes time to sign on the dotted line and CAL changes their mind. Hmmm...

Let's not forget where Continental came from. This is a very familiar Lorenzo tactic. That is to say; Strike a great deal, get ready to shake hands and then change your mind because you can always ask for more. Continental is not going to let us into their pants unless we promise to marry them and buy them a big house. That means we give up a lot. And since Glenn can't play poker without showing his hand to everyone at the table, CAL thinks we have more to give. They are certianly not wrong about this.

The panic now showing among our employee groups is just what Continental wants to see. We are desperate and they think that our only other choice is USAir. Which of course, would be like marrying Brittany Spears. We get scared. Investors get scared and the bankers get pissed. Collective pressure is now put on Glenn and our union to soften our position to get a Continental deal done...since USAir will mean a quick (but painful) death.

Glenn has shown his cards and his rather well compensated ass to everyone. Continental is just going to prove that it is all too easy to fleece a moron. In fact, they can probably be excused for disbelieving their own luck.

 

[Jonny Sacko]

Holy crap I laughed, I'll laugh even harder if this thing does go through. That's so funny it reads almost as a script. Excellent job blowing off the fog! Thanks for the laugh! Either way Tilton should be booted this week. He's no good.

 

[D-Bo]

Is anybody watching CNBC right now?? David Faber just reported that Tilton agreed to leave entirely and Kellner STILL said no!! Holy Crap!! Sorry UAL guys/gals. Maybe this will be sufficient to remove him on your own.

I saw that on CNBC. Also said Tilton was blindsided by CALs decision. Pretty funny. Hopefully Wall Street will continue to see that Tilton is out of his league when it comes to managing an airline.